The 614km AKK gas pipeline will transport natural gas from Ajaokuta in Kogi State to the Kaduna and Kano States of Nigeria. What’s more, the flagship pipeline project will support electricity generation to the tune of 3,600 MW while creating employment opportunities and boosting the economy of Nigeria.
Meanwhile, the Minister of State for Petroleum Resources, Chief Timipre Sylva, announced that NNPC subsidiary, NNPC Gas Marketing Limited, and its joint venture partner, Transit Gas Nigeria Limited, have inaugurated the 150 million standard cubic feet per day natural gas city gate in Ogun State. Poised to boost gas utilization while ensuring the safe delivery of gas to various industrial and commercial users in the state, the gas project is expected to promote and integrate the use of gas domestically and generate power for industries.
Angola’s Minister of Mineral Resources, Oil and Gas, Diamantino Pedro Azevedo, stated that the southern African country is forecasting economic growth of 3% in 2023, with the nation’s oil sector serving as the primary driver of economic expansion. It was noted that recent exploration efforts and discoveries, such as those conducted by oil and gas supermajor ExxonMobil in 2022, are set to attract more investment into the sector. Furthermore, global energy major TotalEnergies recently announced its intention to invest $3 billion into oil projects in the country.
An unexpected build in U.S. crude inventories has resulted in lowering oil prices while U.S. inflation data continues to keep markets on edge. U.S. West Texas Intermediate futures fell 0.3% to $73.50 per barrel while Brent oil futures fell 0.1% to $77.23, with both contracts trading up between 2.7% and 3.1%, respectively, recovering from a 17-month low last week.
Slow economic growth and rising interest rates have hampered oil price outlooks for the year as prices continue to decline at a rate of approximately 8% to 10%. A potential banking crisis and fears of a recession in the U.S. are key factors with regards to the decline, with markets focusing on the state of the U.S. economy through consumer price index inflation data. Oil markets benefitted from a slight economic recovery in China as recent trade data from the U.S. indicated a slump of 16% in April.